Industrial heat is one of the hardest sectors to decarbonise and one of the most urgent. When a global investor with over £10bn in funds under management spotted an opportunity to back a heat battery company with commercial traction in Europe and North America, they turned to LCP Delta to validate the opportunity.
With deep sector expertise and proprietary modelling tools, our role was to test the market potential, commercial assumptions, and competitive edge of the target, ensuring the investor had the evidence they needed to make a confident, well-informed investment decision.
Client needs and key question(s)
The investor was looking for clear, independent analysis of the target’s commercial position and future growth. Their key questions included:
- How big is the global market for industrial heat batteries, including which countries and what sectors have the greatest opportunity to decarbonise?
- How does this technology compare (on cost, performance, and deployment potential) with other heat decarbonisation options?
- Is the target’s pipeline realistic, and what is its near-term commercial outlook?
What we did
LCP Delta structured its analysis around three key pillars:
- Cost benchmarking: We developed an independent view of the Levelised Cost of Heat (LCOH), comparing the heat battery to both incumbent solutions like gas boilers and emerging alternatives, across key industrial applications and geographies.
- Market sizing: Using a bottom-up approach, we estimated the Total Addressable Market (TAM) and Serviceable Addressable Market (SAM), segmented by temperature range and industrial sector – with policy context layered in to shape our outlook by region.
- Pipeline assessment: We reviewed the target’s claimed project pipeline against our deployment modelling and cost benchmarks, stress-testing their assumptions and flagging both strengths and risks.
The results
Our insights gave the investor:
- A data-backed view of global opportunities, with policy-aligned growth regions identified.
- A reality check on sales projections, helping shape commercial expectations.
- Confidence in the long-term role of heat batteries in industrial decarbonisation.
These inputs helped underpin a successful investment decision, grounded in evidence and market insight.
